ABN: What Is It, Should You Get One and How Is It Used For Home Loans
If you’re going to become a self-employed person, you need to have an ABN (or Australian Business Number). If not, the companies you do business with can hold 46.5 percent of payments that you’re owed for tax reasons.
And, this number will also help you to attain a low doc loan. Thus, registering for one is extremely important.
What’s an ABN?
It’s actually a unique 11-digit number that identifies your business and used when interacting with other companies. You’ll have to put the ABN number on sales-related documents and invoices. It is also to be used with government agencies like the Australian Tax Office (ATO). And, although it’s dependent on your turnover, you need it to register for GST.
Is getting an ABN worth it to you?
If you want to run your own business, it’s certainly necessary.
In What Others Ways Is The ABN Used?
- Simplify your business activity statement
- Claim energy grant credits
- Claim GST credits
- Purchase an Australian domain name
How Can You Apply For an ABN?
You have three options in which to apply for your ABN
- Fill out online application on the Australian Business Register website
- Paper applications documents can be downloaded through the ATO website
- Tax agent who can complete the application for you online
Make sure that you fill the information out as clearly and correctly as you can. Mistakes, whether accidental or on purpose, can cost you severely. If you falsify information, you could get hit with a $10,000 fine. A mistake on the ABN application could cost you more than $3,000.
If you are already self-employed and are looking to secure finance to purchase a home, commercial property, equipment for your business or any other valid purpose, contact us today to see how you can qualify for a low doc loan.